> They had over 100 billion in profits in 2012.
EBITDA was $36B.
Giving up ~2/3rds of the money available for dividends or reinvestment in the business is not going to fly with the shareholders.
EBITDA was $36B.
Giving up ~2/3rds of the money available for dividends or reinvestment in the business is not going to fly with the shareholders.
I think that for this discussion Net Income is the more appropriate figure to use given that Walmart's interest, tax, depreciation and amortization add up to tens of billions of dollars.
They booked net income for 2011-12 as $15.6B. So a $20B payrise would put them in the red.
People latch onto Walmart because of the amazing numbers involved. Hundreds of billions of dollars in revenue! Thousands and thousands of stores! Millions of employees!
But the thing is, retail is a really tough business to turn a buck on. After this massive machine has sprint through a year, the result is ... about a 3% profit on revenue.
Compare that with Google: On ~$50B revenue Google walks out with ~$10B of net income. For eight times less revenue Google is still managing to make more than half as much profit as Walmart.
Where are the picket lines outside Google HQ?
Wal-Mart has to hire these workers, but we can be sure if they had any reason to hire fewer of them they would.